What happened: Prime Minister Mark Carney officially launched Build Canada Homes yesterday, a new federal agency designed to fast-track and fund more affordable housing units across the country.
- The feds will start by building 4,000 modular homes on public land in six cities, including Ottawa, Toronto, Winnipeg, and Edmonton.
- The agency is also allocating $1 billion to develop supportive housing and services for Canadians facing homelessness.
Catch-up: Carney pitched the agency on the campaign trail as the cornerstone of his plan to double Canada’s homebuilding rate. The agency will act as both a developer and financier — building below-market housing itself as well as bankrolling private builders that are doing the same.
Why it matters: Canada needs 5.8 million new homes by 2030 to restore affordability to early-2000s levels. But with homebuilding costs up nearly 60% since 2020 and housing starts essentially flat in major cities, the sector could certainly use some help.
- The idea is that by cutting red tape, unlocking public land, and offering up government investments, the feds can get the housing train moving a little faster.
Yes, but: Labour shortages in the construction sector are still looming large. According to one estimate, Canada would need to add about half a million construction workers to meet the 2030 home-building goal.—LA